I just received an offer from ET Energy Partners for minerals I own in the Robert Steel Sy. A-820 & 827 in Leon County. It seems like a weak offer at $500 per net mineral acre and a 17.5% royalty which includes my portion of their costs incurred for gathering, treating, dehydrating, compressing, processing, transporting and delivering production and any costs of marketing or rendering marketable or more valuable the covered minerals. Can anyone tell me an approximate percentage of a royalty payment that these fees end up costing the royalty owner? Thanks!
You should be able to get at least 20% royalty and no expenses or shared cost. They pay for all the treatment etc. Find a good oil and gas attorney before signing a deal…
2 Likes
Where are these abstracts located in Leon County ?
You can use the RRC map to find the abstract location.
https://gis.rrc.texas.gov/GISViewer/
1 Like
For December 2025 production in Leon County, Comstock reported a gross sales price of about $3.00 per MCF. Reported marketing cost (gas treatment, transportation, etc.) was about $1.10 per MCF.
Without a cost-free royalty provision, post-production costs would consume about 37% of the royalty.
2 Likes
That is an awful offer. I would counter at 25% expense free. I have no opinion on bonus amount. lease form is very important. Join TLMA and use their form.
1 Like
Leon County isn’t the Permian Basin. I am not seeing any royalty for 25% in the Cotton Valley unless the acreage is huge since this is natural gas play.